Trading in the shares of communications equipment manufacturer Ascom Holding AG was temporarily suspended in Zurich yesterday as the first prices quoted were over 10% below Monday’s closing level. Cause of the bloodbath was the company’s announcement after the market closed on Monday that it made a first half pre-tax loss equivalent to $53.6m, warned of a substantial loss for the full year and announced that it intends to declare a further 700 redundancies – 250 in Switzerland – on top of the 1,000 announced in May. The company attributes the loss to a fall in orders in the second half of last year which had hit revenue, adding that reduced capital spending led to an above average fall in revenue of 23% in the Swiss market. It is also seeking to streamline its private mobile radio business, where earnings were unsatisfactory and is in talks with possible partners on joint ventures or other forms of co-operation in private radio.
